ARA Legal Regulations & Environmental Considerations 2 — Questions and Answers
Question 1: Under CERCLA, which party is typically held liable for remediation costs of a contaminated rural property?
- Only the current property owner
- Only the party that caused the contamination
- All potentially responsible parties including past owners and operators (Correct answer)
- Only the federal government
Correct answer: All potentially responsible parties including past owners and operators
CERCLA imposes strict, joint, and several liability on all potentially responsible parties, including current owners, past owners, operators, and those who arranged for disposal.
Question 2: Which federal law primarily governs the regulation of wetlands on rural properties through Section 404 permits?
- The Endangered Species Act
- The Clean Water Act (Correct answer)
- CERCLA
- The National Environmental Policy Act
Correct answer: The Clean Water Act
Section 404 of the Clean Water Act requires permits from the Army Corps of Engineers for discharging dredged or fill material into wetlands and other waters of the US.
Question 3: A Phase I Environmental Site Assessment is primarily designed to:
- Collect soil and water samples for laboratory testing
- Identify Recognized Environmental Conditions (RECs) through records review and site inspection (Correct answer)
- Determine the cost of environmental remediation
- Certify that a property is free of contamination
Correct answer: Identify Recognized Environmental Conditions (RECs) through records review and site inspection
A Phase I ESA identifies RECs through a non-invasive process including historical records review, regulatory database searches, and site reconnaissance.
Question 4: A conservation easement on a rural property typically:
- Transfers full ownership to a land trust or government agency
- Permanently restricts certain uses while the landowner retains title (Correct answer)
- Expires after 30 years unless renewed
- Requires annual approval from the county planning board
Correct answer: Permanently restricts certain uses while the landowner retains title
A conservation easement is a voluntary legal agreement restricting development or other uses in perpetuity while the landowner retains ownership.
Question 5: Under the Endangered Species Act, which term describes land that is critical to the survival of a listed species even if the species is not currently present?
- Primary habitat
- Critical habitat (Correct answer)
- Refuge zone
- Protected corridor
Correct answer: Critical habitat
Critical habitat is a specific geographic area designated by the U.S. Fish and Wildlife Service as essential for the conservation of a threatened or endangered species.
Question 6: When appraising a rural property subject to a FEMA Special Flood Hazard Area (SFHA) designation, the appraiser should:
- Ignore the flood zone since rural properties rarely flood
- Note the SFHA designation and analyze its effect on value and marketability (Correct answer)
- Recommend the owner apply for a Letter of Map Amendment to eliminate the designation
- Exclude the property from the appraisal scope
Correct answer: Note the SFHA designation and analyze its effect on value and marketability
The appraiser must identify and disclose the SFHA designation and analyze how mandatory flood insurance and use restrictions affect market value.
Question 7: Which environmental issue associated with older rural farmsteads most commonly involves underground storage tanks (USTs)?
- Pesticide drift from neighboring parcels
- Petroleum product storage for farm equipment fueling (Correct answer)
- Methane emissions from livestock operations
- Nitrate leaching from fertilizer application
Correct answer: Petroleum product storage for farm equipment fueling
Older farms often have USTs used to store diesel or gasoline for tractors and equipment, which can leak and contaminate soil and groundwater.
ARA Legal Regulations & Environmental Considerations 2
Under CERCLA, which party is typically held liable for remediation costs of a contaminated rural property?